In statistical multiplexing, the number of bits allocated to each of a plurality of digital video channels is dynamically adjusted many times a second based on the complexity of the digital video carried by each channel. The complexity of digital video is a measure of how much data (or ‘bits’) is required to describe how to display the digital video. When a particular channel requires an increase in bits to sufficiently describe the complexity of digital video carried thereby, additional bits can be allocated to that channel from another channel which is not using all of its assigned bits at that moment.